Prakash Constrowell IPO Review & Recommendations

Prakash Constrowell IPO Review by Dilip Davda (Avoid)

[Dilip Davda]  <p>&nbsp;</p> <p style="TEXT-ALIGN: justify"><strong><span style="FONT-WEIGHT: normal">The Company's income from operations on a consolidated basis as per the restated financials has grown from<span style="mso-spacerun: yes">&nbsp; </span>Rs 26.40 crore in the year 2007-08 to Rs 126.91 crore in the year 2010-11 exhibiting a compounded annual growth rate of 68.77 % over the period of past four financial years. Its profit after tax on a consolidated basis as per the restated financials has grown from Rs 3.06 crore in the year 2007-08 to Rs 10.65 crore in the year 2010-11 exhibiting a compounded annual growth rate of 51.47 % over the period of past four financial years. However, if this earnings translated on the basis of enhanced equity post this issue, than the EPS for 2010-11 stands at Rs. 10 and the book value of Rs. 39 as on 31.3.2011 makes this offer at and around 13 P/E and 3.3 P/BV on the lower price band. Thus it looks aggressively priced and hence </span></strong><strong><span style="mso-bidi-font-weight: normal">worth giving it a MISS</span></strong><strong></strong></p> Read detail review...